Basis of preparation

Standalone financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

The standalone financial statements have been prepared on the historical cost basis, except for
following assets and liabilities which have been measured at fair values.

Ý Derivative Financial Instruments

Ý Certain financial assets measured at fair value (refer accounting policy regarding financial
instruments).

In addition, the carrying values of assets and liabilities designated as hedged items are recognized at
fair value.

The standalone financial statements are presented in INR (?) and all the values are rounded off to the
nearest rupees except when otherwise indicated.

Business Combinations

The Company accounts for its business combinations under acquisition method of accounting.
Acquisition related costs are recognized in the statement of profit and loss as incurred. The acquiree's
identifiable assets, liabilities and contingent liabilities that meet the condition for recognition are
recognized at their fair values at the acquisition date.

Purchase consideration paid in excess of the fair value of net assets acquired is recognised as
goodwill. Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after
reassessing the fair values of the net assets and contingent liabilities, the excess is recognised as
capital reserve.

Business combinations arising from transfers of interests in entities that are under the common
control are accounted using pooling of interest method. The difference between any consideration
given and the aggregate historical carrying amounts of assets and liabilities of the acquired entity are
recorded in shareholders' equity.

Use of Estimates, Assumptions And Judgements

The preparation of the standalone financial statements in conformity with Ind AS requires the
management to make estimates, judgements and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities on the date of the standalone
financial statements and the reported amounts of revenues and expenses for the year reported. Actual

results could differ from those estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimates are
revised and future periods are affected.

Key source of estimation of uncertainty as at the date of standalone financial statements, which may
cause a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, is in respect of the following :

• Revenue recognition

The Company uses the percentage-of-completion method in accounting for its fixed-price
contracts. Use of the percentage-of completion method requires the Company to estimate the
efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts
or costs expended have been used to measure progress towards completion as there is a direct
relationship between input and productivity. Provisions for estimated losses, if any, on
uncompleted contracts are recorded in the period in which such losses become probable based on
the expected contract estimates at the reporting date.

• Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.
The fair value less costs of disposal calculation is based on available data from binding sales
transactions, conducted at arm's length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the forecast for future years. These do not include restructuring
activities that the Company is not yet committed to or significant future investments that will
enhance the asset's performance of the CGU being tested. The recoverable amount is sensitive to
the discount rate used for the DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes. These estimates are most relevant to other
intangibles with indefinite useful lives recognized by the Company.

• Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most
appropriate valuation model, which is dependent on the terms and conditions of the grant. This
estimate also requires determination of the most appropriate inputs to the valuation model
including the expected life of the share option, volatility and dividend yield and making
assumptions about them.

• Taxes

The Company's major tax jurisdictions is in India. Significant judgments are involved in
determining the provision for income taxes and tax credits, including the amount expected to be
paid or refunded.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that future
taxable profit will be available against which the losses can be utilized.

Significant management judgement is required to determine the amount of deferred tax assets that
can be recognized, based upon the likely timing and the level of future taxable profits together
with future tax planning strategies.

• Defined Benefit Plans

The cost of the defined benefit gratuity plan and other post-employment benefits and the present
value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments in the future.

• Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in active markets, their fair value is measured using
internal valuation techniques. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.

• Intangible assets under development

The Company capitalizes intangible asset under development in accordance with the accounting
policy. Initial capitalization of costs is based on management's judgement that technological and
economic feasibility is confirmed. This is done when a product development project has reached a
defined milestone according to an established project management model. In determining the
amounts to be capitalized, management makes assumptions regarding the expected future cash
generation, discount rates to be applied and the expected tenure of benefits.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the fair value of the consideration received or receivable, considering
contractually defined terms of payment.

Goods and Service Tax ("GST") is not received by the Company on its own account. Rather, it is tax
collected on value added to the commodity/service rendered by the seller on behalf of the
government. Accordingly, it is excluded from revenue.

The Company derives its revenues primarily from software services & projects as well as other allied
services.

Revenues from software services & projects comprise income from time-and-material and fixed price
contracts. Revenue from time and material contracts is recognized when the services are rendered in
accordance with the terms of contracts with clients.

Revenue from fixed price contracts is recognized using the percentage-of-completion method,
calculated as the proportion of the cost of effort incurred up to the reporting date to estimated cost of
total effort.

Revenue from sale of services is shown as net of applicable discounts and pricing incentives to
customer.

Revenue is recognised only when evidence of an arrangement is obtained and the other criteria to
support revenue recognition are met, including the price is fixed or determinable, services have been
rendered, the cost incurred and cost to complete the transaction can be measured reliably and

collectability of the resulting receivables is probable.

Provisions for estimated losses on incomplete contracts are recorded in the year in which such losses
become probable based on the current contract estimates.

Unbilled revenue represents revenues in excess of amounts billed to clients as at the balance sheet
date. Unearned revenue represent billings in excess of revenues recognized.

Advances received for services are reported as liabilities until all conditions for revenue recognition
are met.

Interest income is recognized as it accrues in the statement of profit and loss using effective interest
rate method.

Dividend income is recognized when the right to receive the dividend is established.

Property, Plant and Equipment and Intangible assets

Property, plant and equipment are stated at the cost of acquisition or construction less accumulated
depreciation and write down for, impairment if any. Direct costs are capitalised until the assets are
ready to be put to use. When significant parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on their specific useful lives.

All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.
Property, plant and equipment purchased in foreign currency are recorded at cost, based on the
exchange rate on the date of purchase.

The Company identifies and determines cost of each component/ part of Property, plant and
equipment separately, if the component/ part has a cost which is significant to the total cost of the
Property, plant and equipment and has useful life that is materially different from that of the
remaining asset.

Intangible assets purchased or acquired in business combination, are measured at cost or fair value as
of the date of acquisition, as applicable, less accumulated amortisation and accumulated impairment,
if any. The amortization period and the amortization method are reviewed at least at each financial
year end. Internally developed intangible assets are stated at cost that can be measured reliably
during the development phase and capitalised when it is probable that future economic benefits that
are attributable to the assets will flow to the Company.

Gains or losses arising from de-recognition of Property, plant and equipment are measured as the
difference between the net disposal proceeds and the carrying amount of Property, plant and
equipment and are recognized in the statement of profit and loss when the Property, plant and
equipment is derecognized.

Cost of assets not ready for use at the balance sheet date are disclosed under capital work-in-progress.
Capital Work In Progress Rs. 4.30 Crore

The company has taken over the assets and liabilities of Vanavil Technology Private limited by

amalgamation and the scheme of amalgamation was approved by the High court order dated 21st
day of September, 2001. The Capital work in progress of the Portal assessed at Rs. 4.40 crore. Certain
WIP of small projects from Vanavil was taken over to the tune of Rs.0.13 crore and relevant
expenditure from the date of amalgamation to till date were added to this social net working
platform. The company has incurred 2.48 crores towards Capital Work in progress of this portal.
Once the portal is completed in all aspects, it will be capitalized in the books of accounts of the
company.

During the FY 2021-22, an amount of Rs. 2,71,55,306/-, being part of Capital Work-in-Progress, was
transferred to one of the Unsecured Loan Creditors. A note in this connection was mentioned to this
effect in FY 2021-22. The Capital Work-in-Progress as on 31-03-2024 was Rs. 4,30,62,958/-.

Depreciation And Amortization

Depreciation on Property, plant and equipment is calculated on a straight-line basis using the rates
arrived at, based on the useful lives estimated by the management. Intangible assets are amortised on
a straight- line basis over the estimated useful economic life.

The useful lives estimated by the management are given below:

Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Leases, where the Lessor effectively retains substantially all the risks and benefits of ownership of the
leased items are classified as operating leases. Operating lease payments are recognised in the

statement of profit and loss on a straight line basis over the lease term, unless the lease agreement
explicitly states that increase is because of inflation.

Leases under which the Company assumes substantially all the risks and rewards of ownership are
classified as finance leases. Such assets acquired are capitalised at the fair value of the leased asset or
the present value of the minimum lease payments at the inception of the lease, whichever is lower.

For arrangements entered into prior to 1 April 2015, the Company has determined whether the
arrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are expensed in the period they
occur.

Impairment:

a) Financial Assets (Other Than At Fair Value)

The Company assesses at each date of balance sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 ('Financial Instruments') requires expected credit losses
to be measured through a loss allowance. The Company recognises lifetime expected losses for
all contract assets and / or all trade receivables that do not constitute a financing transaction.
For all other financial assets, expected credit losses are measured at an amount equal to the 12-
month expected credit losses or at an amount equal to the life time expected credit losses if the
credit risk on the financial asset has increased significantly since initial recognition. The
Company provides for impairment upon the occurrence of the triggering event. As per the
policy, The Company provides for impairment of trade receivables (other than intercompany
receivables) outstanding more than 180 days from the date they are due for payment.

b) Non-Financial Assets

Tangible And Intangible Assets

Property, plant and equipment and intangible assets with finite life are evaluated for
recoverability whenever there is any indication that their carrying amounts may not be
recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value
less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the cash generating unit (CGU) to which the
asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount,
the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment
loss is recognised in the statement of profit and loss.

Retirement and Other Employee Benefits

Gratuity, which is a defined benefit plan, is accrued based on an independent actuarial
valuation, which is done based on project unit credit method as at the balance sheet date. The
Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset
or liability. Gains and losses through re-measurements of the net defined benefit liability/
(asset) are recognized in other comprehensive income. In accordance with Ind AS, re¬
measurement gains and losses on defined benefit plans recognized in OCI are not to be
subsequently reclassified to statement of profit and loss. As required under Ind AS compliant
Schedule III, the Company transfers it immediately to retained earnings.

The cost of Short-term compensated absences is provided for based on estimates. Long term
compensated absence costs are provided for based on actuarial valuation using the project unit
credit method. The Company presents the entire leave as a current liability in the balance sheet,
since it does not have an unconditional right to defer its settlement for 12 months after the
reporting date.

Contributions payable to recognized provident funds, which are defined contribution schemes,
are charged to the statement of profit and loss.

Share Based Payments

The Company measures compensation cost relating to share-based payments using the fair valuation
method in accordance with Ind AS 102 Share-Based Payment. Compensation expense is amortized
over the vesting period of the option on a straight line basis. The cost of equity-settled transactions is
determined by the fair value at the date when the grant is made using an appropriate valuation
model (Black-Scholesmodel).

That cost is recognised, together with a corresponding increase in share-based payment (SBP)
reserves in equity, over the period in which the performance and/ or service conditions are fulfilled in
employee benefits expense. The cumulative expense recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent to which the vesting period has expired and
the Company's best estimate of the number of equity instruments that will ultimately vest.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation
of diluted earnings per share.

Foreign Currencies

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction.
Foreign currency denominated monetary assets and liabilities are restated into the functional
currency using exchange rates prevailing on the balance sheet date.

Gains and losses arising on settlement and restatement of foreign currency denominated monetary
assets and liabilities are included in the statement of profit and loss.

The Company's financial statements are presented in INR. The Company determines the functional
currency as INR on the basis of primary economic environment in which the entity operates.

Income Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or

liability during the year. Current and deferred tax are recognised in the statement of profit and loss,
except when they relate to items that are recognised in other comprehensive income or directly in
equity, in which case, the current and deferred tax are also recognised in other comprehensive income
or directly in equity, respectively.

Current Income Tax

Current income tax for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities based on the taxable income for that period.
The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance sheet date.

Deferred Income Tax

Deferred income tax is recognised using the balance sheet approach. Deferred tax is recognized
on temporary differences at the balance sheet date between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes, except when the deferred income
tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is
not a business combination and affects neither accounting nor taxable profit or loss at the time
of the transaction.

Deferred income tax assets are recognized for all deductible temporary differences, carry
forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred income tax asset to be utilized.

Deferred income taxes are not provided on the undistributed earnings of branches where it is
expected that the earnings of the branch will not be distributed in the foreseeable future.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply in the period when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the balance sheet date.

Effective Apr 2018, the Company has adopted Ind-AS. Due to the various constraints the
Management could not determine the Differed tax effects at the end of previous reporting
period. However, during the current reporting period the Company has evaluated the effect of
deferred taxes and made necessary adjustments to the statement of Profit & Loss and to the
Balance Sheet. Refer Note No 6.2 of the Financial statements.

Deferred tax assets include Minimum Alternative Tax ('MAT') paid in accordance with the tax
laws in India, which is likely to give future economic benefits in the form of availability of set
off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in
the balance sheet when the asset can be measured reliably and it is probable that the future
economic benefit associated with the asset will be realized.